[UPDATED] Malaysia agrees to ratify Trans-Pacific partnership treaty: Miti

KUALA LUMPUR – Malaysia has agreed to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the International Trade and Industry Ministry (Miti) said.

Putrajaya officially submitted the instrument of ratification to New Zealand, the CPTPP depositary on September 30, following the cabinet’s approval, Miti said in a statement.

“The CPTPP (will) broaden Malaysia’s access to new markets such as Canada, Mexico and Peru, which are not covered by any existing Free Trade Agreement (FTA), providing access to a wider range of high-quality raw materials at competitive prices, and increases the country’s attractiveness as an investment destination. 

“At the same time, the CPTPP offers technical assistance and capacity building programmes that aim to improve and develop local sectoral capabilities in key industrial areas such as automotive, E&E, chemicals, optical and scientific equipment as well as medical devices,” the statement said.

Malaysia’s position in the global trade economy will be further elevated, it added, with total trade expected to increase to USD655.9 billion in 2030 as a result of participation in the 11-member country partnership.

By the same year, exports are also projected to reach USD354.7 billion, Miti said.

The ministry also said that with more countries expected to sign on to the treaty, Malaysia will have even wider and deeper market access opportunities.

The impact of the treaty will be duty-free treatment – in stages – on nearly all Malaysian exports to other CPTPP countries, making Malaysian exports such as automotive parts, plastics, surgical gloves, rubber products, textiles, cocoa and food items, more competitive.

The treaty also allows Malaysian manufacturers easier access to raw materials from CPTPP countries and allows Malaysian companies to bid for government procurement contracts in member countries at lower thresholds.

In the services sector, the treaty allows services suppliers from Malaysia to expand their exports – whether as firms or individuals – to CPTPP countries, benefiting those working in a range of professions.

Miti said the CPTPP once ratified will be in addition to 15 other FTAs that Malaysia has signed, and it will “co-exist” with all the other agreements. 

“It is up to the private sector to determine which FTA best meets their needs and provides the maximum benefits. The CPTPP is yet another option, provided by the government, for the benefit of the private sector.” – The Vibes, October 5, 2022